Financial Requirements

SECTION 4. FINANCIAL REQUIREMENTS AND TREATMENT OF CUSTOMER PROPERTY.

[Effective dates of amendments: December 17, 1999; June 2, 2008; October 4, 2010; October 18, 2010; September 1, 2012; February 15, 2013; September 6, 2013 and June 30, 2020.]

(a) Any Member FCM, RFED, or IB who violates any of CFTC Regulations 1.10, 1.12, 1.16, 1.17, 1.20 through 1.30, 5.6, 5.7, 30.7 or 22.2 through 22.17 (as applicable) shall be deemed to have violated an NFA Requirement.

(b) Each Member FCM must instruct each depository, as required by NFA, holding customer segregated funds under CFTC Regulation 1.20, customer secured amount funds under CFTC Regulation 30.7 or cleared swaps customer collateral under CFTC Regulation 22.2 to report the balances in the FCM's customer segregated funds, customer secured amount funds and cleared swaps customer collateral accounts to NFA or a third party designated by NFA in the form and manner prescribed by NFA.

(c) In addition to the requirements of CFTC Regulation 1.49(d), in order to be an acceptable depository to hold customer segregated funds accounts identified in CFTC Regulation 1.20, the depository must report the balances in the FCM's customer segregated funds account(s) held at the depository to NFA or a third party designated by NFA in the form and manner prescribed by NFA.

(d) In addition to the requirements of CFTC Regulation 30.7, in order to be an acceptable depository to hold customer secured amount accounts identified in CFTC Regulation 30.7, the depository must report balances in the FCM's customer secured amount account(s) held at the depository to NFA or a third party designated by NFA in the form and manner prescribed by NFA.